9 More Real Estate Misconceptions Debunked by REALTORS®
Buying or selling a home involves a lot of work, from searching, to staging, to signing the offer. Your REALTOR® will walk you through every step of the process and answer all your questions, but before this happens you may already have some misconceptions about the home buying or selling journey. It’s bound to happen, with so many people sharing opinions and experiences, but these misconceptions can end up leading you astray when it comes to finding your dream home.
A few months ago we spoke with some REALTORS® to help debunk some of the more common misconceptions around real estate. Now, we’re back with more REALTORS® and more myths to shed some light on.
1. Buying a new build is cheaper and means fewer repairs in the first few years
Buying a new build can be cheaper, yes. If you buy a pre-construction condo, you pay market value at the time of purchase, but occupancy is years later and prices go up over time. In addition to this, oftentimes (but not always) there will be a builder’s warranty (Tarion Warranty) on the bigger systems in the house for a certain amount of time. But … just because you buy a new build doesn’t mean you’ll need fewer repairs in the first year. This depends on what stage you take occupancy and on the quality of the builder.
– Tamar Wagman, Sutton Group Associates – The Josie Stern Team in Toronto, Ontario
Buying a new build can be extremely exciting! It typically comes with some additional costs, often in the form of a driveway, landscaping, deck, fence, and basement development. They can add up fast and you have to be aware of your budget, plus timelines if your community requires completion within certain deadlines.
– Kevin Appl, Realty Executives Saskatoon in Saskatoon, Saskatchewan
2. All REALTORS® are the same.
Let’s start by defining who REALTORS® are. People may use REALTOR® and real estate agent interchangeably, but they’re not always the same thing. REALTORS® are members of the Canadian Real Estate Association (CREA) and are held to CREA’s Code of Ethics. Not every real estate agent is a member of CREA.
Definitely not. Some work full-time and some work part-time. Some are commercial and some are residential. Some work rural properties and some urban. Some specialize in condos, some freehold, some both. Some specialize in new-build; condos and freehold. It’s best to interview several REALTORS® to choose the one that best suits your personality or go with a referral from someone you trust.
– Tamar Wagman
Every agent, every client, and every transaction is different. You’re about to make what will probably be the largest, or one of the largest, purchases or sales in your lifetime, and you’re looking for guidance or help from a REALTOR®. My advice to anyone would be to find an agent you “click” with. Someone you will enjoy working with, who you trust to absolutely have your best interests at heart.
– Jeffrey McKenna, Realty Atlantic Inc. in New Glasgow, Nova Scotia
No two REALTORS® are the same. Everyone has areas they specialize in. It’s like a pair of shoes—the experience is intensely personal and only you know what feels right. Make sure to take your time when selecting an agent. Trust, education, and great communication are the keys to a successful experience.
– Kevin Appl
3. Winter is a bad time to sell.
The “spring” market can start as early as late January or early February, and this can be the best time to sell. Most think winter is a bad time to sell because of winter weather. They’re concerned buyers won’t go out in bad weather, or they want to show their gorgeous spring gardens. However, fewer listings on the market can mean more competition over the listings that do come out. More buyer competition can mean more money in a seller’s pocket. Winter can be a great time to sell.
– Tamar Wagman
Winter is a fantastic time to sell! Buyers who are out looking at properties in -20 C weather are usually quite serious. Added bonus, you don’t need to invest the time or money into mowing the lawn, sprucing up the garden bed mulch, or buying plants to up the curb appeal, since they’re covered in snow.
– Jeffrey McKenna
Sometimes a lack of comparable listings during the winter months gives sellers an advantage, since there are still buyers out there but with less inventory to choose from.
– Regan O’Rourke, Royal LePage Property Consultants in St. John’s, Newfoundland and Labrador
4. You should only consider school districts/amenities if you’re planning on having a family.
Stage of life is very important with this myth—and it is a myth. There’s a time to consider a good school district and a time to save the premium expense that comes with it. If you aren’t planning on having children or that plan is a ways away, there’s no reason to pay a premium price.
– Tamar Wagman
The more a community has to offer, the better investment any property is within it. Just because you don’t plan on having children, homes in areas with a great school district, surrounded by parks and rec centres, can sell for higher prices. This can do nothing but benefit you when it eventually comes time to sell.
– Jeffrey McKenna
If your mindset is resale, or you plan to purchase with a much shorter turnaround time, then yes, absolutely you should be considering purchasing in an area with a great school district or particular amenity that’s quite popular.
– Kevin Appl
5. If the bank says you can afford it, you should buy it.
It’s incredibly important to do some math and be as honest as possible with yourself. Purchasing a home should improve your quality of life, not add stress through unrealistic financial strain.
– Jeffrey McKenna
There are so many factors to consider here. What are your long-term plans? Is there a family in your future and can you afford a reduced income if needed? What about if you plan to travel or are concerned about retirement? Maxing out your budget isn’t generally a good idea in case of interest rate changes, too!
– Kevin Appl
6. There’s no point in addressing repairs or renovations in your home since you’re selling it anyway.
Any unresolved repair issue, or very dated space, can signal to a potential buyer that maybe there are other issues surrounding maintenance or upkeep within the home. You end up needlessly creating red flags that can scare away potential buyers. Simple changes can make a big impact, and it’s important to ask your REALTOR® for guidance if you’re unsure. For example, replacing dated light fixtures and some paint can make an incredible impact on a space.
– Jeffrey McKenna
Sellers are required to disclose certain information regarding their homes. If you avoid doing necessary repairs or renovations, it will most likely have to be disclosed by the sellers or it will come up on a home inspection. Both can affect the sale price.
– Regan O’Rourke
7. You should list high so people negotiate and you end up at your ideal price.
Pricing is the most important part of the home selling process. List too high and you won’t get the traffic of potential buyers. You’ll also run the risk of sitting on the market a long time and, the longer a property sits, the more potential buyers could think there’s something wrong with it, and the more negotiating power they believe they will have.
– Tamar Rimon Wagman
Pricing your home high has the opposite effect than what was intended. For example, buyers pre-approved for $250,000 will typically only search up to that amount when they’re hunting online, meaning they won’t even see your home listed at $275,000. You’re unintentionally encouraging people to shy away from your property, or even use it as a comparison for why they should buy the better priced property down the street.
– Jeffrey McKenna
Buyers are much more educated and likely to understand the pricing for homes in their desired area. If you overprice your home, it becomes the benchmark for which all other similar homes are judged. You may end up actually costing yourself money in the long run.
– Kevin Appl
8. The longer a house is on the market, the better the negotiating leverage for the buyer.
To a certain degree yes, but this also depends on the seller. Do the sellers have to sell or are they testing the market? Are they stuck on the price? One thing I can say for certain is that buyers will think they have more leverage if the property is sitting, so they will likely offer under list price.
– Tamar Rimon Wagman
Yes and no. This greatly depends on the motivation of the seller. Some sellers are fine to hold out for the price that they want, while others need to sell the property sooner than later. It can also signify that the property was overpriced, or that there may be a deeper underlying issue with the property that is encouraging buyers to shy away from it. Your REALTOR® can really help guide you strategically in moments like these.
– Jeffrey McKenna
9. Staging your home doesn’t make a difference when selling.
Staging your home can make all the difference. A lot of sellers will resist this expense, but it will generally reap big rewards. It’s important to make potential buyers feel welcome while walking through. Sellers want to give buyers a wow factor and want prospective buyers to envision living in that space. Stagers literally set the stage for falling in love.
– Tamar Rimon Wagman
That retro vintage orange and brown wallpaper accent wall? Your everything-zebra primary bedroom? These bold choices may bring you joy everyday, but Suzy Homebuyer and her partner Jane might not get the same joy from it that you do. Even simpler changes, like removing clutter and junk, can have a big impact. You need people to be able to picture their lives in your space, and it’s hard to do that if the space is too, well, “you”. An outside perspective from your REALTOR® can be invaluable when it comes to making these sale-time changes.
– Jeffrey McKenna
If the home is vacant or disorganized, staging makes a huge difference! First impressions are just as important in housing as they are on a date! Clean up the messes, rent furniture or even hire a designer for a consultation. Put a little effort in, receive a higher purchase price on the way out. Highly recommend.
– Kevin Appl
What’s the wildest real estate rumour you’ve ever heard?
Tamar Wagman—People think they can rent their houses and then have their tenants leave when they sell.
This is a myth and it’s not nearly as simple as that. Tenants have rights and you cannot evict them just because you are selling. It’s complicated and landlord/owners should always check with the landlord tenant bureau to make sure they are complying with the rules and regulations involved.
Kevin Appl — It’s ok to house shop without a pre-approval.
We hear this one all the time. Why would you house shop without knowing your budget? I’ve seen this several times when a client starts to budget creep and winds up falling in love with a property that a lender ultimately can’t finance for them. It’s heartbreaking. Plus, from a REALTOR®’s perspective, we’re unable to fully serve the client since we have no idea of a shopping range, as well as how competitive that buyer will be in a multiple offer situation without financing.
Jeffrey McKenna—A home with any issue should be avoided
A home well within your budget, that crosses off most of the items on your wishlist, but it has a scary dark damp basement? Old signs of minor water damage, but the roof was replaced last year? Certain issues with homes scare off potential buyers, but that’s why it is so important to utilise the services of a trusted home inspector. The damp basement might have an easy, fairly inexpensive fix. The roof did leak, but it doesn’t now, and here are some easy cosmetic fixes. Always do your due diligence to protect yourself, but be open to properties that may need a little love if it can get you that much closer to your dream home!
These are just some of the common misconceptions about buying and selling, and there are surely more out there. Real estate can be intimidating, but with the right REALTOR® by your side, it can be made easier.